insurance
deductible
The amount you pay out-of-pocket before your insurance begins to cover costs, or an expense that can reduce taxable income.
Example
"Her health insurance had a $2,000 deductible, meaning she paid the first $2,000 of medical costs."
💡 Memory Tip
DEDUCT-ible — something you DEDUCT. It's deducted from your insurance payout or your taxes.
Etymology
From Latin 'deducere' meaning 'to lead away' — an amount led away (subtracted) from coverage or taxes.
Common Misspellings
deductabledeductibedeductibeldeductiblee
Related Terms
See Also
insurancepremiumcopay